Their aim is to find the best short story for a live audience, with the winning entry - as well as the two runners up - performing at an awards show in November.
"We started this short story competition because we want to find exciting, challenging new writers and bring their work to the Brighton stage," said a Rattle Tales spokesperson.
For over four years Rattle Tales have put on regular shows in Brighton, in which new and established writers are given the chance to perform their work and discuss it with the audience.
They play to packed houses locally, as well as venturing further afield to Noyelles sur Mer in France, the Green Man Festival and hosting the short story slam at Charleston's Small Wonder Festival.
The group recently announced that their judge this year
is best-selling author Peter James.
"We are very excited that Peter James has agreed to judge The Brighton Prize.
It is an honour to have such a successful and accomplished author associated with the competition."
Peter James added: "Brighton has been a source of inspiration for writers as diverse as William Thackeray, Patrick West, Graham Greene and James Herbert.
"Its long literary heritage has never been so vibrant as it is today, home to some the nation"s most successful authors and home to some truly exciting fresh young writing talent.
It is really a thrill for me to be judging the Brighton Prize this year."
Peter will decide the winners from a highly commended short-list. The winner will receive £500 and the runners up £100 each. Writers on the short-list will all be offered publication.
Open to anyone over 18, the competition"s closing date is July 7th 2015 and has an entry fee of £6. There are no restrictions on subject or genre but the story must be between 1000 and 2000 words long.